A.M. Best Assigns Ratings to Arch Indemnity Insurance Company
A.M. Best Assigns Ratings to Arch Indemnity Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a financial strength rating of A+ (Superior) and an issuer credit rating of "aa-" to Arch Indemnity Insurance Company (AIIC)(Omaha, NE), whose ultimate parent is Arch Capital Group Ltd (Arch) (Bermuda) (NAS: ACGL) . The outlook assigned to both ratings is stable.
The ratings of AIIC are enhanced due to reinsurance support from an affiliate. In addition, A.M. Best expects that this entity will be managed similarly to other Arch operating companies, which have a strong history of prudent cycle management, solid capital management and a superior enterprise risk management culture.
AIIC will focus on writing workers' compensation business both regionally and nationally in the United States.
Factors that could lead to a positive outlook or an upgrading of AIIC's ratings include long-term favorable operating profitability relative to its peers and maintenance of strong risk-adjusted capital levels.
Factors that could cause a revision in the outlook to negative or a downgrading of the ratings include unfavorable operating profitability trends, outsized underwriting losses or investment losses relative to peers, a reduction in the commitment and support from its affiliated operating companies or Arch, significant adverse loss reserve development and/or a material decline in risk-adjusted capital.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visitwww.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
A.M. Best Company
Greg Reisner
Managing Senior Financial Analyst
908-439-2200, ext. 5224
greg.reisner@ambest.com
or
Rachelle Morrow
Senior Manager, Public Relations
908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Robert DeRose
Vice President
908-439-2200, ext. 5453
robert.derose@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
908-439-2200, ext. 5644
james.peavy@ambest.com
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